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Wellness Benefits
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The rising cost of healthcare presents a unique challenge to many companies today. Major health concerns of the past were related to infectious disease. Today, however, the leading causes of death and decline in quality of life are largely due to unhealthy lifestyle choices. Studies of comprehensive worksite health programs and corporate fitness programs can lower healthcare and insurance costs. Increased productivity, improved performance and reduced absenteeism are additional benefits of these programs. Recent studies indicate that nearly 50% of corporate profits now go towards healthcare costs versus 7% thirty years ago. Employee wellness programs are the best approach to reducing employer, employee and overall healthcare costs. For organizations such programs reduce costs by increasing worker productivity by lowering absences from work and direct medical costs. The result is a demonstrably improved bottom line.
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Absenteeism is reduced by employer health promotion and wellness programs: The cost of corporate health benefits, as a percentage of after-tax profits, has increased from 26% in 1989 to 45% in 1990. Health Care Benefits Survey 1991 - Indemnity Plans - Cost, Design, and Funding. Princeton, NJ: A. Foster Higgins & Co., Inc; 1992: 2-3. A Cornell University press release (Sept. 24, 1999) stated: "When workers heed the computer's reminder to take a break, their productivity jumps." Workers who used computer software to remind them occasionally to assume good posture, take short breaks and occasionally stretch, do more accurate work and as a result are more productive, according to a new Cornell University study (Prof. Alan Hedge - Director of Cornell's Human Factor and Ergonomics Faculty) Annual medical expenses range from $ 114 for normal-weight employees to $573 for overweight employees to $620 for obese employees. Research shows that keeping each healthy employee healthy reduces future healthcare costs by $350 per year. Edington, D.W. Emerging research: A view from one research center. American Journal of Health Promotion, 2001; 15:5, 341-349. In reviewing the most recent 24 studies, all but one evidenced
positive health outcomes. Again, of the studies which analyzed
cost-effectiveness or cost benefits, every one indicated a positive
return. (studies published between 1991-1993) In 2000, more than 5 million people sustained nonfatal injuries in the workplace. more than 1.5 million of these people lost time from work. Enterprising health professionals can help prevent these costly problems by offering disease prevention programs. http://stats.bls.gov/iif/home.htm Research shows that employees who are physically active have annual direct medical costs $330 lower than inactive employees. Pratt, Michael, et al. Higher direct medical costs associated with physical inactivity. The Physician and Sports Medicine, 2001; 28:20.
Simply helping employees control their blood pressure has saved one company $547 per person per year. (Texas Department of State Health Services Building Healthy Texans Workplace Wellness Toolkit)
Pacific Bell's fitness participants had a $ 300 less claim per case. This works out to a one year savings of $ 700,000. Coca cola saved $ 500 per employee reduction in healthcare claims for employees who joined their fitness program. Pacific Bell's use of a fitness program decreased absent days by 0.8% to save $ 2 million in one year. Fitness members also spent 3.3 days less on short term disability for an additional savings of $ 4.7 million. DuPont Corporation conducted a 2 year study of the effect of their comprehensive health promotion program. Absences among blue collar workers had a 14% decline in disability days compared to 5.8% decline for controls. A decrease of 11,726 disability days was reported. The Coors Brewing Company found that, in 1990, it returned $6.15 for every dollar spent on its corporate fitness program. This was the sixth year of its fitness program with annual returns ranging from $1.24 to $8.33. Wellness Councils of America 1991 |
Articles: Wellness Programs are Worth Every Dollar You Spend Employee-Wellness Programs Pay Off in Productivity and Morale Fitness Benefits Comes in From the Fringe DaimlerChrysler Corp receives prestigious Corporate Health Achievement Award Reduce Absenteeism and Costs Related to Chronic Back or Neck Pain Work Related and Individual Predictors for Incident Neck Pain among Office Employees Employee Wellness is Good Business Microsoft: Shape_up_your_company.pdf Shape up your company with a wellness programAbsenteeism Costs Companies More Than Ever |
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